Greek police fired teargas to disperse about 50 demonstrators in central Athens after clashes broke out during protests against government austerity measures, a police official said.
Left-wing groups and communist trade unions rallied in the Greek capital a day after the government announced €4.8 billion in wage cuts, a pension freeze and tax increases to reduce its huge fiscal deficit.
‘There were clashes between police and protesters,’ the official said. ‘Police fired teargas. There were a few arrests.’
Opposition to the austerity measures has so far been relatively muted for a country with a tradition of street protests but one pollster said it should move quickly to counter a general sense of shock.
The private sector GSEE union and its sister public sector union ADEDY, which represent half of Greece's 5-million workforce, called workers to stop work from midday on Friday and attend a rally outside parliament.
Earlier, the European Central Bank has welcomed measures unveiled by Greece to cut its swollen public deficit, but said Athens should quickly adopt ‘decisive structural reforms’ as well.
Greece launched a fresh round of draconian austerity measures, winning respite on the markets and setting the scene for crucial European support that analysts say could come soon.
The government increased sales, tobacco and alcohol taxes and cut public sector holiday allowances to save €4.8bn, or about 2% of Gross Domestic Product.
Pensions in the public and private sector were also frozen.
‘This demonstrates the strong commitment of the Greek government to achieve the fiscal objectives enshrined in its stability programme,’ the ECB statement said.
Central bank governors also appreciated Greece's ‘recognition that it is imperative to also rapidly adopt and implement decisive structural reforms,’ it added.
The ECB's official line is that Greece must sort out its catastrophic finances on its own, but analysts and press reports say rescue plans backed by major euro zone countries, like Germany and France, are being drafted and should be announced shortly.
Greece could sell islands to cut debt - German MPs
Greece should consider selling some of its islands as one option to reduce debt, two members of the German parliament in Chancellor Angela Merkel's centre-right coalition said.
Josef Schlarmann, a senior member of Ms Merkel's Christian Democrats, and Frank Schaeffler, a finance policy expert in the Free Democrats, were quoted as saying that selling islands and other assets could help Greece out of its crisis.
‘Those in insolvency have to sell everything they have to pay their creditors,’ Mr Schlarmann told Bild newspaper. ‘Greece owns buildings, companies and uninhabited islands, which could all be used for debt redemption.’
Opinion polls show Germans are overwhelmingly against taxpayers bailing out Greece.
Chancellor Merkel will meet Greek Prime Minister George Papandreou in Berlin tomorrow.
‘The chancellor cannot promise Greece any help,’ Mr Schaeffler told Bild in a story under the headline: ‘Sell your islands, you bankrupt Greeks! And sell the Acropolis too!’
‘The Greek government has to take radical steps to sell its property - for example its uninhabited islands,’ Mr Schaeffler said.
Greek Deputy Foreign Minister Dimitris Droutsas was asked about the idea in an interview with ARD TV.
‘I've also heard the suggestion we should sell the Acropolis,’ he said. ‘Suggestions like this are not appropriate at this time.’
Germans have had an allergic reaction to reports their country may be part of a bailout for Greece. Europe's biggest economy itself is only just creeping out of its worst post-war recession.
